VC Investment Trends

According to an article in Crain's NY, most of VC investments made during the second quarter of 2012 went to California companies. Out of $2.1 billion in total, only $30 million was invested in New York startups, whereas California companies received $1.45 billion. The total amount is an increase of 16% over a year ago.

$30 million in investments that went to New York was a decline of 87% as compared to the same period last year (out of that amount, one-third was invested in Adaptly). This decline can be explained by the fact that New York attracts early tech startups that do not typically receive big investments. As the attention of VCs shifts to more early stage companies, the amount of money received by New York companies will increase. Actually, the number of seed level deals in New York is on the rise: it increased by 14% over the previous quarter. Let's hope that this trend continues and that New York-based companies will not be compelled to migrate to California just to attract VC capital.

Read more commentary from Arina Shulga on the legal aspects of operating new and growing businesses at Business Law Post.

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